Where's best for financial advice

[J's Mum]

I've been left some money and I'm unsure what to do with it, if I save it il end up spending it and having nothing to see for it.

 

I do have debts which this would make a big dint in but I didn't want to again see nothing for it.

 

I'd like to own my own property and this could get a deposit.

 

Any advice please

[Moosey]

Having been in quite a bit of debt before, I'd personally sort those out. You free up monthly income when they're paid off and I can tell you now that having had debt the feeling of now being able to say you're debt free is great.

 

I might be wrong but I would guess that the interest on your debts is higher than you'd get on savings too.

 

I'm no expert tho.

 

 

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[GoLdFInGeR]

I've been left some money and I'm unsure what to do with it, if I save it il end up spending it and having nothing to see for it.

 

I do have debts which this would make a big dint in but I didn't want to again see nothing for it.

 

I'd like to own my own property and this could get a deposit.

 

Any advice please

 

In what ballpark amount are your current debts and what interest rate are you paying on them at the moment?

[J's Mum]

I'm currently on a DMP so I'm lucky not to pay any interest, I've thought about paying off the smallest ones ( I've got 3 small ones) and then my monthly payment will just be off the big amount

 

---------- Post added 16-04-2013 at 20:10 ----------

 

I've got about £11000 of debt left to pay

[GoLdFInGeR]

I'm currently on a DMP so I'm lucky not to pay any interest' date=' I've thought about paying off the smallest ones ( I've got 3 small ones) and then my monthly payment will just be off the big amount[/quote']

 

if you're on a dmp and they've frozen the interest, that means the loans have gone into default yes?. So unless your deposit is huge, I can't see you getting a mortgage and even then.

 

What type of debt is it, credit card or personal loan debt over 15k?

 

ahh ok £11k

[J's Mum]

I was quite stupid and got into about £30000 of debts after interest etc on credit cards and a personal loan. I've paid off the majority as you can see

[GoLdFInGeR]

I was quite stupid and got into about £30000 of debts after interest etc on credit cards and a personal loan. I've paid off the majority as you can see

 

No problem, not going to judge you, everyone gets into money crap at one time or another. The information which follows should not be seen as financial advice and is purely for entertainment purposes only and you should consult and instruct your own financial and legal team to advise and act on your behalf

 

If they've already put your debts into default?, those debts are going to be on your record for 6 years whether you pay them or not from the date you satisfy them. If this is the case, you need to NEGOTIATE A SETTLEMENT FIGURE as full and final settlement, much lower than what you owe. Don't use your DMP advisor to do this, do it yourself, I would offer each debtor 25p on the £1 maximum, tell them to take it or leave it as you've come into a little money and that's all you can afford to pay each debtor. If they reject this, they probably will, negotiate but keep it well down, way below half what you owe in total, sooner or later they will take it, even if not at first.

 

You want this to be satisfied so the 6 year countdown can begin where these defaults are removed from your credit history. This will leave you with still most of your cash but the debts will be gone.

[Oh Carol]

No problem, not going to judge you, everyone gets into money crap at one time or another. The information which follows should not be seen as financial advice and is purely for entertainment purposes only and you should consult and instruct your own financial and legal team to advise and act on your behalf

 

If they've already put your debts into default?, those debts are going to be on your record for 6 years whether you pay them or not from the date you satisfy them. If this is the case, you need to NEGOTIATE A SETTLEMENT FIGURE as full and final settlement, much lower than what you owe. Don't use your DMP advisor to do this, do it yourself, I would offer each debtor 25p on the £1 maximum, tell them to take it or leave it as you've come into a little money and that's all you can afford to pay each debtor. If they reject this, they probably will, negotiate but keep it well down, way below half what you owe in total, sooner or later they will take it, even if not at first.

 

You want this to be satisfied so the 6 year countdown can begin where these defaults are removed from your credit history. This will leave you with still most of your cash but the debts will be gone.

Then you are free to do it all again!

[J's Mum]

There's no way on earth I'm going back to debt. I've struggled for to long and I'm never doing it again

[GoLdFInGeR]

There's no way on earth I'm going back to debt. I've struggled for to long and I'm never doing it again

 

Which is exactly what all of the people I've advised have said in very similar situations once they've negotiated settlement figures and the debt has gone from around their necks. They never want to go back to that place. The good news is sometimes it can take a life lesson like this to make you great with money in the future. I reckon you'll be just fine.

 

As for buying houses, there are big things happening with residential mortgages, my advice, again for entertainment purposes only, hold on until early next year, this will give your credit history time to update with all your debts tagged as satisfied and some interesting mortgage products may be introduced for first time buyers. For now, I would wait. Clear your debts and let things settle.